Volvo backtracks on its plan to go EV-only by 2030

The Swedish automaker said it was responding to changing market conditions and customer demands.

Published On Sep 18, 2024 08:00:00 AM

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Volvo XC90 facelift used for representation only.

Volvo has scrapped its target of having only electric vehicles on sale by 2030, Reuters has reported. The Swedish brand said in a statement that by 2030, it was targeting 90-100 percent of cars sold to be fully electric or plug-in hybrid models, whereas 10 percent would be so-called mild hybrids.

Volvo is the latest car brand to scrap EV sales targets
Plug-in hybrids will be vital for Volvo

Major manufacturers have seen subdued demand for EVs partly due to a lack of affordable models and the slow rollout of charging infrastructure. Carmakers have also been preparing themselves for the effects of European tariffs on made-in-China EVs, the newswire noted.

Volvo said in a separate statement that plug-in hybrids would be a vital part of its growth in the future. The recently revealed XC90 facelift gets both PHEV and mild-hybrid versions, and the company says that the first customers will receive the SUV by the end of the year in international markets.

The company sells a mix of all-electric and hybrid cars, and had until now remained steadfastly committed to its plans to only sell EVs by 2030, even as its rivals began scaling back their plans. Some of Volvo's flagship all-electric models are the EX90 and the EX30; both SUVs.

Growing demand for hybrid cars has prompted a strategic shift across the industry which had initially aimed to phase out hybrids in favour of fully EVs. The brand, which is majority-owned by Geely, said it was responding to changing market conditions and customer demands.

SOURCE

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